• What is VoIP and how does it work?
  • How much does it cost?
  • How can I get it and what are my options?


With technology reaching a futuristic level, some may find it strange our basic utilities haven’t gone the same way. Despite the major advancements in technology over the past decade, why do we find ourselves still using the 100-year old home phone standard? Some may say it’s laziness, other’s might say the technology just isn’t there yet. The reality is the technology is out there and it’s just waiting for you to use it.

VoIP is a communications technology that runs solely through the internet connection. It functions and looks like your normal home phone while costing a whole lot less and delivering a clearer call quality. If you’ve ever used Skype or a similar application then you would have a general idea of the technology that VoIP uses.

A few years ago using a service like VoIP would’ve involved a difficult setup and constant maintenance but in the last few years has become an easy and more affordable solution. Here’s a breakdown of how VoIP operates, it’s cost and how to get it.

old phone

Fortunately this is a relic of the past

How does it work? 

VoIP stands for Voice over Internet Protocol. Essentially, it’s a virtual phone line that runs through the internet connection rather than the phoneline. Whilst it is an online service, it also ties in with the pre-existing phone lines meaning you can make calls over the internet through to other landlines. VoIP is a completely stand alone product, it doesn’t require a computer to use and can even run through your modem.

horse and buggy

This is a metaphorical representation for your current phone line.

 A big difference with VoIP over a standard home phone is the billing schedule. Rather than paying for what you have used at the end of the month, VoIP plans usually will will employ a credit-based format very similar to that of a pre-paid phone where you only pay for what you want to use in the month ahead. This also means most VoIP plans will also be offered withoutcontracts. You pay the hardware upfront and a monthly service charge + credit and you have the freedom of being able to cancel your service whenever you want without hidden cancellation fees.

race car VOIP

And this is VoIP.

What does it cost?

So aside from sounding cool and looking flash, what’s the advantage over landlines? Well, VoIP will save you heaps of money. Below is a chart comparing the costs of a regular landline against it’s newer, electronic counterpart.

Telstra HomeLine Budget 

  • Local Calls - 30c per call (Untimed)
  • Call Connection Fee - 45c a call
  • National Calls - 25c per minute + 45c connection
  • Calls to mobiles - 36c per minute + 45c connection

Internode VoIP

  • Local Calls & National Calls- 18c per call (Untimed)
  • Call Connection Fee - 15c (Only for International calls)
  • Calls to mobiles - No connection fee + 29c per minute

The comparison is obvious. Whether you’re a high octane chatter with your local friends or like to keep in frequent contact with relatives interstate or overseas: VoIP is going to save you a lot. Better yet because it of it’s credit based, non-contractual nature it works around your needs. Going away on holiday for a month? Don’t worry about paying for calls you’re not going to make. Had someone move out of the house? Drop your credit down and start saving immediately. It’s not only cheap but flexible.

How can I get it?

There’s quite a few options when choosing a VoIP service and fortunately most providers will allow you to add them on top of your existing broadband connections.

The best product and support offered for VoIP currently comes from the well established Australian internet provider Internode. Currently rated the best internet service provider in Australia, Internode will not only offer the best prices and all the hardware needed, they will also offer extensive support in setting it up. Internode’s VoIP solution, called NodePhone VoIP, offers a few different hardware choices. The best of these options being an all in one VoIP enabled modem by the name of FritzBox that also comes with FritzFon VoIP handsets (piictured below).

Many internet providers offer similar priced VoIP services along with support on setting them up, whether you have ADSL or NBN. So you’re not starved for choice when it comes to VoIP and you’re sure to find an option that suits you. To get startet, get in touch with us today